We expect learning and people development software provider Cornerstone OnDemand Inc. to generate large negative free operating cash flow (FOCF) and decrease total liquidity in 2023 due to higher interest expense, unvested restricted stock units (RSU) cash payments and additional cost-saving expenses. Therefore, we revised our outlook on Cornerstone to negative from stable and affirmed our 'B-' issuer credit rating. The negative outlook reflects our expectation that Cornerstone will generate large negative FOCF and decrease liquidity in 2023. While Cornerstone has strong recurring revenue, adequate liquidity, no near-term maturities and is expected to improve EBITDA, we believe there is risk that Cornerstone can face additional business operations or macroeconomic headwinds that hurt its profitability such that Cornerstone underperforms our forecast
